It's completely possible. They can't currently charge a break fee on their 3 year fixed rate, so pay off as much as you like, whenever you like. You don't have to break and refix the entire balance to overpay a fixed rate mortgage.Thanks for the reply.
I'm in a fixed rate with aib, so overpayment isn't really possible, except for breaking and refixing every year.
So our idea was to save for couple of years and pay a big lump sum.
Sorry, I assumed you were in 3 year rate. Exact same applies to the 5 year rate.Why only the 3 years?
I'm on the 5 years, I'll ask the bank how would that work.
I think we can manage to save enough to pay off the mortgage in full by the end of the 5 years ....
Should we do that or should I start putting more in my pension a
@RedOnion
Why only the 3 years?
I'm on the 5 years, I'll ask the bank how would that work.
@Gordon GekkoCan you develop on the "far from it" ? I have relatives in this situation who are hesitant in getting a pension because they feel like it would take too much cash away.
While I don't disagree with Brendan's points, there is a big dollop of security and comfort in being mortgage free.
Paying off the mortgage within 5 years should not be an objective. It's nice to be mortgage free but there is no reason for you to pay your total life accommodation costs over just 10 years of that life.
I think we can manage to save enough to pay off the mortgage in full by the end of the 5 years,
We live fairly frugally
We want to buy a house eventually, but with our jobs and no kids it's actually very convenient to stay put for another 5 years.
2) If you might like to trade up or move at some stage in the future, it's good to have a lot of equity in your home. At the moment, you have €55k equity. This would allow you to put the required deposit of 20% on a house worth about €250k. Build the equity up to €80k, and you could buy a house for €400k.
You probably are happy where you are and have no intention of trading up, but plans change.
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